Do you mark up some of your bills, so the management company gets a percentage paid out to them from a specific bill? This article will show you how to enable markups in your Rentvine account and add a markup when creating a bill.
A markup is a service fee that property management companies add to bills that are paid on behalf of an Owner.
If markups are already enabled in your Rentvine account you can skip the below steps
Getting the markup enabled in your Rentvine account.
- Navigate to your global settings
- Under the Accounting section, click on Accounting Settings
- Navigate to the Billing section
- Edit the "Vendor Markups Enabled" and set to "Yes"
- Now add the "Vendor Markup Expense Account". This is to let the system know what chart of account to use when the markup bill is automatically created.
If you do not have a Vendor Markup Expense chart of account please get one created. To get this created view the article attached. How to Enter a New Chart of Accounts
Now that your markup settings are configured in your Rentvine account, you can now get a markup added to a bill. Please note that if the steps above are not configured the system will not let you markup a bill.
Getting a bill marked up in your Rentvine account
First you want to navigate to the "Add bill" section in the system. If you have questions on how to add a bill, please see the article on how to get a bill added in the system. How to Add, Edit and Delete a Bill
- Select the vendor in the payee section to show who is getting paid out for this bill.
- Once the payee is selected a "Markup %" section will show up in the bill details.
- Once you finish getting the bill completed and the markup percentage is entered, the system will show you the breakdown of the bill with the markup.
- In the example above the bill is showing that portfolio "Dan Jones" is paying out a bill to Vendor "1st General Contractor" for $100. But it also shows a 10% markup. So once this bill is created there will be two bills that are linked together.
- Once you click save, the system will create the original bill that is going to the vendor and it will also create a markup bill that is going to the property management company.
- Once you are ready to get these bills paid out you can, and get that recorded in the system.
Deciding whether you want to show the markup bill to the owner or not.
If you DO NOT want the owner to see the markup bill on their owner statement you can go to your owner statement settings and get this configured.
- Navigate to your global settings.
- Under Accounting, click Statements.
- Click on the owner statement profile you want to show/not show the markup bill on.
- Make sure "Combine Markup" is set to "Yes" if you DO NOT want the owner to see it on their statement. It will combine the total of the original paid bill and the mark up paid bill together on the statement.
- Now if "Combined Markup" is set to "No" it will separate the two paid bills apart on the owner statement, so the owner can see the marked up paid bill.
